"That game is almost over"
Snip...
[Some categories of real estate may fall farther than others. Take second homes and investment properties, for example. The National Association of Realtors reports that a record 40% of all homes bought last year were not a primary residence for the buyer. The trend is particularly strong among Baby Boomers -- more than a quarter of them own at least two homes. "We've seen a lot of entrepreneurs, a lot of customers trek to that market," says Kevin Kane, a senior vice-president at Fox Chase Bank in suburban Philadelphia. On the New Jersey Shore, Kane had been seeing customers buying $750,000 beachfront homes, tearing them down and building two homes on the lot. "They'd flip one and live in the other mortgage free," he says.]
Full article from Businessweek.
posted by Little_Silvered at 8:32 PM
2 Comments:
The report of the demise of the housing market has been greatly exaggerated. .............................The Commerce Department reported Wednesday that sales of new single-family homes increased by 4.9 percent last month to a seasonally adjusted annual rate of 1.198 million units, the highest rate since last December.
You are too close to the market to see the forest for the trees. We have been going to the Jersey shore for 50 years. Prices for beach property passed reality four or five years ago. Two bedroom cape cods for $1 million? If there is any disaster looming for real estate in the U.S. it is right on the Jersey shore.
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